Setting up an Ltd in England is today one of the most effective solutions for launching or expanding your business internationally. The UK offers a recognized pro-business environment, with one of the most competitive corporate tax rates in Europe. This advantageous tax framework enables entrepreneurs to maximize profits while structuring their business flexibly.
Beyond taxation, opening a company in England offers a number of advantages: simplified procedures, specific exemptions for SMEs, and no tax on foreign dividends. These are just some of the advantages that make the Ltd a powerful tool for growth without increasing the tax burden.
At WizeCounselwe offer you a full service for creating Ltdin partnership with locally-based professionals. Whether you're a freelancer, an investor or the head of an established company, we'll work with you from A to Z to turn your English company into a solid, compliant growth lever.
Corporate taxation: what are the advantages?
Opening a company in Englandis to benefit from an advantageous tax system with a competitive tax rate, targeted exemptions for SMEs, ultra-fast set-up (48 hours), and simplified access to international markets.
19 %
IS
20 %
VAT
0 %
Dividends
What types of activities are suitable for the UK?
Incorporating a company in the UK can be an excellent opportunity for certain activities. However, it is important to note that not all types of business are suitable, especially if the activity is exclusively based in another country. Here are a few examples that lend themselves particularly well to the UK context:
E-commerce and online services : Target an international market with attractive tax advantages.
ConsultingActivities with no specific physical location.
Asset management Optimize your financial structures.
England
Income tax
19 % whatever the profit, with a possible reduction to 0 % via the Agency Agreement Law (offshore optimization between 80 % and 90 % of revenues).
Social security charges
No compulsory employer's contributions if no employees. Below £702/month, no deductions. Between £702 and £3,863: rate of 12 %. Above £3,863: rate reduced to 2 %. No minimum contribution for self-employed managers.
Legal VAT rate: 20 %
Monthly, quarterly, half-yearly or annual returns. Principle of input and output VAT.
Dividends
0 % tax on dividends (paid outside UK).
Other benefits
- No share capital required - Set up in 48 hours - Simplified procedure - Highly flexible status - Ideal in combination with holding companies or offshore structures
USA
Income tax
If 100 % of business is outside the U.S.: no federal tax.
Social security charges
No social security contributions if you have no employees or activities in the United States. Executives are not subject to local social security contributions. No federal minimum wage, total freedom to set compensation levels.
Legal VAT rate: 0 %
No federal VAT. Sales of goods/services outside the USA are not subject to local tax. Be aware of local rules if you sell to US customers.
Dividends
0 % tax on dividends (in a transparent LLC-type structure).
Other benefits
No capital required - Rapid set-up - 100 % online procedure - No declaration of commencement of business required - Start-up on receipt of EIN - No bureaucracy - Structure recognized for its stability and flexibility - Ideal in combination with optimized international strategies
France
Income tax
Standard rate of 25 %. Reduced rate of 15 % possible for certain SMEs under certain conditions.
Social security charges
For employees: charges between 20 % and 25 % of gross (employee) + 40 % to 45 % (employer). In 2024, above €1,747.20/month: the employer manager is subject to withholding tax.
Legal VAT rate: 20 %
Quarterly declaration. VAT collected and deductible under the actual system.
Dividends
Taxes on dividends: 30 %
Other benefits
Heavy bureaucracy - Sometimes long registration times - Minimum share capital: €1 (in theory) - Advantage: European company, governed by EU directives - Good banking and administrative image (useful for certain projects)
